The document summarizes Pirelli's investments and targets from 2010-2013. It outlines Pirelli's strategy to increase investments and capacity across regions to capitalize on market growth, especially in premium segments. Key targets include doubling EBIT margins across most regions by 2013, growing revenues by over 30% with higher volumes and prices, and rebalancing profitability across consumer and industrial segments. Contingency plans and flexibility in sourcing strategies are also discussed to mitigate raw material cost risks.

1. INVESTMENTS AND TARGETS
CHANGING THE GAME
Francesco Gori
Chief Operating Officer

2. 2

3. AGENDA
INVESTMENT ALLOCATION
TYRE MARKET VALUE
PLAN ORGANIZATION: A TIGHT MATRIX
PIRELLI BY REGION
TYRE MARKET VOLUME AND INDUSTRY INVESTMENTS
STRATEGY IMPLEMENTATION
PIRELLI TARGETS BY MATRIX
“WHAT IF” CONTINGENCY PLANS
3

4. WORLD TYRE MARKET TREND
Source: Tire Business reports for 2000-2009
+9%+9%
-10.0%-10.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
70
69
72
80
93
103
112
128
140
126
4
CAGR
$/bln

5. Michelin
Bridgestone
Goodyear
WORLD MARKET SHARE TREND
Source: Tire Business reports for 2000-2009
70 69
72
80
93
112
128
140
126
-
20
40
60
80
100
120
140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0%
5%
10%
15%
20%
25%
Market Share %
5
$/bln
Total Market
-5.8
-3.4
-3.4
Continental-0.7
Pirelli +0.7

6. WORLD TYRE MARKET: 5-YEAR FORECAST
Source: 2010-2015 Global Insight, Pirelli Estimates
>190
10%10%
+7%+7%
2009 2010 2011 2012 2013 2014 2015
126
140
~150
6
$/bln
Total Market
CAGR

7. PIRELLI ESTIMATES MATCH INDUSTRY ANNOUNCEMENTS IN THE
TYRE MARKET FOR CARS
7
~50% ~20%
~30%
In 2015, China will represent
~20% of world capacity
2011-2015 ADDITIONAL INDUSTRY CAPACITY
CAGR
1.5
+3.6%+3.6%
+4.7%+4.7%
CAR TYRES
LATAM+APAC
EMEA+NAFTA
bln/pieces
1.2
1.4
46%44%
2010 201
3
201
5
Source: Global Insight, Pirelli Estimates
+6.6%
+2.3%+2.3%
No foreseen
overcapacity
China India Others Total
56% 54%
41%
59%
~300 mln pcs Net Capex for 15 $/bln
(-30 mln pcs divested)
Source: Pirelli Estimates based on tyre manifactures announcements

8. AND FOR TRUCKS
8
~40%
~40%
~20%
~40 mln pcs Net Capex for 10 $/bln
(-2 mln pcs divested)
China India Others Total
No foreseen
overcapacity
+5.3%+5.3%
+6.2%+6.2%
mln/pieces (All Steel)
2010 2013 2015
+7.5%
+2.1%+2.1%
124
70%
148
164
2011-2015 ADDITIONAL INDUSTRY CAPACITYTRUCK TYRES
LATAM+APAC
EMEA+NAFTA
In 2015, China will represent
~50% of world capacity
30%
67%
73%
27%33%
CAGRSource: Global Insight, Pirelli Estimates Source: Pirelli Estimates based on tyre manifactures announcements
2010 201
3
201
5

9. PIRELLI MANAGED THROUGH A TIGHT MATRIX
Strategic deployment
Value proposition
Best practices
Digital innovation
9
EMEA NAFTA LATAM APAC
Product & Process
proprietary
technology
Breakthrough design
Time-to-market
Day-to-day delivery
Cost optimization
Regional adaptation
People development
Revenues size indication
C
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S
U
M
E
R
I
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D
U
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R&D

10. PIRELLI STRATEGIC IMPLEMENTATION
10
EMEA NAFTA LATAM APAC
Improve focus
Streamline
operations
Increase
efficiency
Keep lean
Improve scale
economies
Stay regional
Time-to-market
and Premium
customization
Platform and
component
standardization
Innovative
material
solutions and
processing
Revenues size indication
C
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R&D

11. KEY LEVER WILL BE THE INCREASE IN PIRELLI
INVESTMENT RATE
1.2 0.7
15 11
1.35
1.4
(net)
11
Capex
(€/bln)
Additional
capacity
(mln pieces)
2011-13 2014-152006-10
INVESTMENT ALLOCATIONINVESTMENTS
Consumer
Industrial
14% 56%
3% 27%
Mature
LATAM &
RDE

12. EMEA MARKET GROWTH AND PIRELLI STRATEGY
12
EBIT margin:
from mid-single digit to
double digit by 2013
80%
464 484 501
81%
452
2.1%2.1%
Consumer Tyre Market (Car)
mln/pieces
OE
Repl.
2011 2013 20152010
19% 20%
80% 80%
87% 83%
29 30 33
35
3.7%3.7%
83%
87%
Industrial Tyre Market (Truck)
mln/pieces
OE
Repl.
2011 2013 20152010
13% 17%
Focus on premium fast
growing segments
Consolidate leadership
in the Motorbike segment
Russia production focused
on Winter
Selective approach to
OEM
Low cost/premium
capacity increase
Further cost efficiencies
Source: Global Insight, Pirelli Estimates
Pirelli Revenue Growth
MEA
EU
+6%+6%
2,500
2,800
21%
2,350
20%
€/mln
2011E 2013E2010E
2,100
19%
2009A
20%
13% 17%
20% 20%
79%
81%
80% 80%

13. EMEA EBIT INDEX BRIDGE 2010-2013
Depreciation/
others
EfficienciesPrice/mix Raw materials
& cost of inputs
Volume EBIT 2013EBIT 2010
index “200”
(30)
100
90
index “100”
50
(110)
13
Index”100” = EBIT EMEA 2010

14. Focus on Premium Consumer
segments
Focus on specialized dealer
channel
Volume and Premium mix
growth supported by new
plant in Mexico
M/H Truck tyre sales restricted
to Mexico
Selective approach to
European OEM transplants
Strong brand appreciation
from end-users as shown by
2010 JD Power study with
Pirelli best OE tyre in the
performance/sport segment
NAFTA MARKET GROWTH AND PIRELLI STRATEGY
14
EBIT margin:
from single digit to
double digit by
2013
2.6%2.6%
22 23 24
21
83% 80% 79%84%
Industrial Tyre Market
(Truck)
2011 2013 20152010
OE
Repl.
mln/pieces
16% 17% 20% 21%
81% 81% 81%
82%
3.0%3.0%
334
354 370
318
Consumer Tyre Market
(Car)
2011 2013 20152010
OE
Repl.
mln/pieces
18% 19% 19% 19%
Source: Global Insight, Pirelli Estimates
410 440
Pirelli Revenue Growth
2011E 2013E2010E
335
2009A
+8%
(+10% in
USD)
+8%
(+10% in
USD)
520
€/mln
€/$ 1.33 in 2010; 1.40 in 2011/13

15. YUCATAN
CHIAPAS
TABASCO
CAMPECHE
AGS.
SONORA
CHIHUAHUA
BAJA
CALIFORNIA
NORTE
BAJA
CALIFORNIA
SUR
SINALOA
DURANGO
NAYARIT
ZACATECAS
TAMPS.
VERACRUZ
COLIMA
GUERRERO
OAXACA
JALISCO
COAHUILA
Nuevo
Leon
MEXICO CITY
BUILDING A PLATFORM FOR GROWTH IN NAFTA
 Estabilishment of a new plant in Mexico with a
yearly production capacity of ~5 mln car tyres by
2015
 100% Premium tyres
 Dedicated to serve NAFTA countries, in
particular the USA
 Key benefits
 Better service and lower delivery times to
NAFTA clients
 Competitive manufacturing costs
 Lower logistic costs and no import duties
 Key Investment returns
 Initial investment: 210 mln USD
 Value accretive already < 2013
15
NAFTA corridor

16. LATAM MARKET GROWTH AND PIRELLI STRATEGY
16
Regional Profitability:
no significant change
(mid two-digit)
76%
76%
10
77%77%
11
12
14
6.8%6.8%
2011 2013 20152010
Industrial Tyre Market
(Truck)
mln/pieces
OE
Repl.
23% 23% 24% 24%
6.5%6.5%
78
89
98
72
73% 74% 74%
73%
2011 2013 20152010
Consumer Tyre Market
(Car)
mln/pieces
OE
Repl.
27% 27% 26% 26%
Consolidate Regional
leadership
Keep expanding Pirelli
exclusive tyre dealer network
in best locations
Exploit growing Premium
OEM fitments’ pull-through
on after market sales
Increase local-for-local
content
Source: Global Insight, Pirelli Estimates
>1.7
>2.2
>1.8
2011E 2013E2010E
Pirelli Revenue Growth
1.33
2090A
€/$ 1.33 in 2010; 1.40 in 2011/13
+10%
(+11% in
USD)
+10%
(+11% in
USD)
€/bln

17. brand, dealer exclusivity and product
range
an historical presence in terms of local
production
a leading market share in all business
segment
LATAM
0.9
2005 2007 2009
1.2 1.3
2010E
1.7
… and over 11,000
employees
Campinas
7 plants
Santo André
Gravatai
Sumaré
 No.1 Brand
Top-of-mind brand in Mercosur
Elected no. 1 brand in all sectors
 Strongest dealers network
 Best range
No. 1 local OEM strategic supplier
The only full range player: from 2 wheels to
Truck to Agro
17
A success story of regional leadership,
with sales exceeding 1.7 bln €
#1 #1 #1 #1
Feira de Santana
Merlo
Guacara
€/bln

18. ASIA – PACIFIC MARKET GROWTH AND PIRELLI STRATEGY
Focus on China Premium
consumer market
OEM selection among
premium (EU transplants)
Leverage on F1 to enhance
brand awareness across the
region
China factory becoming high-
end full range: Truck, Car,
Moto, Steelcord
Export hub also for MEA and
Nafta markets (not only APAC)
Regional Profitability:
from single digit to
double digit by 2013
18
OE
Repl.
mln/pieces
55
%
55%
7.2%7.2%
412
474
536
378
2011 2013 20152010
54%54%
Consumer Tyre Market
(Car)
46% 46% 45% 45%
mln/pieces
OE
Repl.
80%
79%
78%
63
81%
80
91
69
7.6%7.6%
2011 2013 20152010
Industrial Tyre Market
(Truck)
19% 20% 21% 22%
Source: Global Insight, Pirelli Estimates
€/mln
2011E 2013E2010E
270
470
310
Pirelli Revenue Growth
2009A
231
+20%
(+22% in
USD)
+20%
(+22% in
USD)
€/$ 1.33 in 2010; 1.40 in 2011/13

19. DEVELOPING PIRELLI PRESENCE IN THE CHINESE MARKET
Planned investments will raise
Pirelli capacity to serve the fast
growing Chinese mkt
Truck tyres Car tyres
+40%
+100%
19
Optimal location: half way
between seaside and
metropolitan areas
Competitive labor cost
Competitive energy cost
Additional capacity by 2013
Largest and best located industrial
compound among tyre peers

20. STRATEGIC SOURCING: FOUR KEY DIRECTIONS
Source: SICOM, oilnergy.com
20
GETTING CLOSER TO NATURAL RUBBER
PLANTATIONS
OPEN INNOVATION WITH KEY SYNTHETIC
RUBBER PLAYERS
DEVELOPING NEW BIOMATERIALS
REPLACING NON-GREEN ONES
INCREASING STEEL CORD PRODUCTION
TO MAINTAIN VERTICALIZATION
Brazil
Turkey
Cina
Romania
BrazilBrazil
Brazil
Italy
Germany
Russia Cina
Japan
Liberia
Vietnam
Indonesia

21. '2007 QI/08 QII/08 QIII/08 QIV/08 QI/09 QII/09 QIII/09 QIV/09 QI/10 QII/10 QIII/10 QIV/10
RAW MATERIAL TREND ASSUMPTION
NATURAL RUBBER
SYNTHETIC RUBBER
21
Avg 2007 = 100
SBR
2,060 $/ton
'2007 QI/08 QII/08 QIII/08 QIV/08 QI/09 QII/09 QIII/09 QIV/09 QI/10 QII/10 QIII/10 QIV/10
Avg 2007 = 100
TSR 20
2,153 $/ton
-200 -300
2011 2011-2013
Input costs headwind
Efficiencies vs 2010 ~+200+80
* *
* Raw materials cost variance vs 2010
Source: SICOM, CMAI
€/mln

22. PIRELLI PROFITABILITY TARGETS BY REGION
>40%
>30%
>20%
>30%
Rebalanced profitability
between Regions
RDE
(Except LATAM)
LATAM
MATURE
2010E 2013E 2015E
22
>50%
<20%
<30% <40% >30%

23. PIRELLI TARGETS BY SEGMENTS
€/Bln
> 6.0
> 4.7
> 5.1
Ind.
Cons.
8%8%
32%
32%
31%
2013E2010E 2011E 2013E2010E 2011E
>8.5%
9÷10%
11÷12%
30%
31%
33%
Ind.
Cons.
Volumes +4% +5%
Price/Mix +4% +3%
23
PBIT (Post Restr.)Revenues
4.0
29%
2009A 2009A
7.7%
33%
2011 vs
2010
CAGR
2010-2013
71% 69%
68%
68%
67% 67%
69%
70%

24. PIRELLI 2010-2013 EBIT GROWTH MATRIX
40% 15% 10% 15%
5% 10% 5%
24
% on Δ EBIT 2011-2013
EMEA NAFTA LATAM APAC
C
O
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S
U
M
E
R
I
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D
U
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T
R
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25. TYRE EBIT INDEX BRIDGE 2010-2013
25
Index”100” = EBIT 2010
Depreciation/
others
Raw materials
& cost of inputs
EfficienciesPrice/mixVolume EBIT 2013EBIT 2010
Index “160”
Index “100”
40
(20)
60
70 (90)70

26. “WHAT IF” CONTINGENCY PLANS
If demand were to fall below our scenarios, a portfolio of
contingency plans is ready
Decelerate
investment
programs
Reduce output
and launch
additional
restructuring
26
 By region, if demand slowdown
is localized
 By segment, if cycle penalizes
either B2B and/or B2C
 Pirelli exposure to RDE markets
softening volume reduction
 Output contingent reduction
in high-cost factories
 Additional restructuring in
higher cost factories
 Program costs freeze as
successfully implemented in
2009

27. THIS AFTERNOON
27
Leading
Edge
Technology
CONSUMER
R&D
INDUSTRIAL
MOTO 2 Wheels Ahead
CAR
Premium and
Efficiency
AGRO
Leverage on
Growth
TRUCK &
STEEL CORD
Regional and Lean

28. DISCLAIMER
28
This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA’s
current expectations and projections about future events and does not constitute an offer or solicitation for the
sale, purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of
the financial community.
These statements appear in a number of places in this presentation and include statements regarding the intent,
belief or current expectations of the customer base, estimates regarding future growth in the different business
lines and the global business, market share, financial results and other aspects of the activities and situation
relating to the Company.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties,
and actual results may differ materially from those expressed in or implied by these forward looking statements as
a result of various factors, many of which are beyond the ability of Pirelli & C SpA to control or estimate precisely.
Consequently it is recommended that they be viewed as indicative only.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of
the date of this presentation.
Pirelli & C. SpA undertakes no obligation to release publicly the results of any revisions to these forward looking
statements which may be made to reflect events and circumstances after the date of this presentation, including,
without limitation, changes in Pirelli & C. SpA business or acquisition strategy or to reflect the occurrence of
unanticipated events.
The Manager mandated to draft corporate accounting documents of Pirelli & C. SpA. Francesco Tanzi, attests –
as per art.154-bis. comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) – that all the accounting
information contained in this presentation correspond to the documented results, books and accounting of the
Company.